RippleExplainedGuide

Version1.99

byAndrewWhite
andrew@[Link]
twitter@OMGateway

Copyright20142015AndrewWhite

[Link]
helpmakeotherpeoplesuccessfulintheareastheycareaboutandI
hopetheinformationcontainedhereinisabletotranslateintoyourown
successwithdigitalcurrencies.

Mymaingoalforthisbookistobenontechnicalandexplainthemost
importantconceptsforyoutoderivebusinessandfinancialbenefitsfrom
[Link]
makesenseoristoocomplicatedIaskthatyoudontgiveup,keep
[Link]
needbesupplementyourlearningwithGooglesearchestohelpgetthe
[Link]
[Link]
alltheinformationbelowdontbesurprisedifafterreadingthisguideyou
becomethegotoexpertaboutRippleinyoursocialnetwork!

InmyopiniontheRipplepaymentsystemisoneofthemostexciting
[Link],payments
canbesenttoanyoneintheworldinanycurrencywithinafewseconds.I
[Link]
purviewofthebankingindustry,suchaslendingormakingpayments,
[Link]
briefoverviewofbusinessopportunitiesintheRippleecosystemandwhat
[Link]
involvedwithRipplesinceearly2013andIhaveexperiencedallofthe
[Link]
beganspeakingtothepublicaboutitIquicklylearnedhowmostpeople
askthesamequestionsandonewaytosatisfythosequestionsistowrite
[Link]
componentsofRippleasitexiststodayanddivedeeperintoeachtopic
butwithoutgettingintothegrittydetails.
Copyright20142015AndrewWhite

Sowiththatsaidwithanynewtechnologytherearetradeoffsbetween
sophisticationandeaseofuse,newfeaturesandnewrisks,andRippleis
nodifferent.ThisbookwasstartedinDecember2013inadozenpages.
Overtimeithasexpandedto50pagesandmyintentismakeyou
conversantinthemainareasofRippleandinviteyoutocontinueinyour
[Link],thisbookisonlyforeducational
purposes,andisnotintendedtoprovideinvestmentadvice.

Bestwishes,
AndrewWhite

Acknowledgments:Iwouldliketothankthefollowingpeoplewiththeir
helpinthisdocument:RippleLabsforpermissiontoreusetheirimages,
andtheRipplecommunityformakingvaluablefeedbackandsuggestions.

Copyright20142015AndrewWhite

TableofContents
WhyDigitalCurrency?
RippleLabs
Wallets
Ripples
Gateways
Consensus
CurrencyIOUs
Traders
MarketMakers
Enterprises
DueDiligenceQuestions
IntheFuture
ImportantRippleInfrastructure
FAQs
Glossary
AbouttheAuthor

Copyright20142015AndrewWhite


WhyDigitalCurrency?

BeforeIgetstartedintothemaintopicofwhatRippleisandwhyitis
important,Iwouldliketoprovidesomebackgroundinformationabout
whatcurrenciesareandwhatishappeningwithcurrenciesingeneral.

Therearethreebasicreasonswhymoderndigitalcurrenciesare
important:1)theysolveproblemsoffraudand
counterfeiting,2)they
reducecounterpartyriskwith3rdparties,and3)efficientlysolvethe
ByzantineGeneralsProblemwhichishowtoderiveatrueanswerfrom
[Link]
discussedlaterintheguide.

FirstofallIwouldliketobeginbydefiningwhatacurrencyis,anditis
usuallydefinedtohavethefollowing6TraitsofCurrency:
Durability,
portability,divisibility,uniformity,limitedsupply,andacceptability.
Someoneelse(Ihavenotbeenabletofindthenameoftheoriginal
author,ifitisyouletmeknowandIwillcredityou)explainedtheseinthe
followingmanner:

Acceptability:Intermsofaformofcurrencybeingacceptedwithin
society,[Link]
acceptanceisforthepurposeoftheexchangeofmoneyforgoodsand
differenttypesofservices.

Divisibility:Thisrelatestomoneybeingeasilydividedintosmaller
[Link]
moneyasisnecessaryfortheirpurchases,thereforeitisnecessaryfor
moneytobeeasilybrokendownfordifferenttypesoftransactions.
Copyright20142015AndrewWhite


Durability:Thissimplyreferstothephysicalwearanduseofmoneyover
[Link]
[Link],moneyismade
fromapapersource,sosomewearandtearmustbeexpected.

Limitedsupply:Inorderformoneytoretainitsworth,theremustbeatype
[Link]
bytheeconomy.

Portability:Quitesimplyitisnecessaryformoneytobeeasilytransported
[Link]
allowsfortheeaseoftransactionsothatmoneycanbetransferredfrom
oneplacetoanother.

Uniformity:Dependingonthedifferenttypesofcurrencythatare
available,[Link]
alsoallowsformoneytobecountedandmeasuredaccurately.

Analternativewayfordistinguishingthecharacteristicsofmoneyisthatit
[Link]
circulationwithinaspecificplace,soifitiseasilyrecognizedanditfollows
theabovecharacteristics,thenitislikelytobegenuine.

Inanutshell,[Link]
modernsystemofbankingwasdevelopedin197274withthennew
digitalaccountingsystemsbyIBMandothersthatmightofheardbefore
suchastheAmericanClearingHouse(ACH).Soletsdescribewhatkind
ofproblemsadigitalcurrencyplatformwilltrytosolveandseeiftheway
solvestheproblemscanbeusefulforimprovingpaymentsinfrastructure.
Copyright20142015AndrewWhite


SolvingtheCounterfeitingProblem

IrecentlygotbackfromaconferencecalledMoney2020thatbrings
togetherbankers,thepaymentsindustry,andcryptocurrencyadvocates,
andIhadadiscussionwithafriendthatexplainedtheimportanceof
digitalcurrencyintermsofhumanhistory.

Onecurrencythathassomeofthedesirabletraitslistedaboveforthe6
[Link]
theabovetraitsithasbeenusedascurrencyforthelastfivethousand
[Link]
[Link]
goldismoney,forcenturiesbeforethescienceofmaterialsandchemistry
waswellunderstood,aprofessionnamedalchemyattemptedtotransform
[Link]
[Link]
successfulandeventuallywiththemoremodernscienceofchemistryit
[Link]
propertiesthatmakegoldagoodchoiceforamediumofexchangealso
makeitproblematicforeconomicreasons:goldcanhavesubstantial
weight,itsdifficultandorexpensivetosecure,sendingittosomeoneelse
isdifficulttodoinatimelymanner,andtheresimplyisntenoughofitfor
theworldsexpandingpopulationasonlyafiniteamountcaneverbe
minedoutoftheearth.
Thusitbecamepopularinrecentcenturiestorepresentgoldinpaper
[Link],as
thetitleofthissectionmayhavegivenyouaclue,counterfeitingpaper
billshasbeenalongstandingproblem.

Copyright20142015AndrewWhite

Toassurepeopleoftheintrinsicvalueofthepaperbills,thefacevalueof
thepaperandUSdollarswasbackedbycertainamountsofgoldorsilver
[Link]
theUnitedStatesthattheyevenspecifiedhowmuchadollarwas
[Link],thepaper
billshaveaproblemwithbeingrelativelyeasytoforgeandthishasbeen
[Link]
seriousproblemthatintheancientworldthepenaltyforcounterfeitcoin
makingwasoftenthedeathpenalty.
Famously(orinfamouslyaccordingtosome)in1972,RichardNixontook
theUnitedStatesoffthegoldstandardandpeggedthevalueoftheUS
dollartoanewmeasureofeconomicfitnesscalledtheGrossNational
Product(wewontgetintoallthereasonsforthisimpor).WiththeGNP
metricthevalueofthedollarbegantobecreatedindigitalsystemsandin
1974theAmericanClearingHousewasestablishedtoprocesselectronic
[Link]
someeconomistsbelievethatdigitalsystemsmakeup98%ormoreofall
monetarytransactions.
Thishashadsometangiblebenefitsforsocietysinceingeneralithas
madethecostofusingmoneylowerforeveryone(andthatsagood
thing).Inthelastcoupleofdecadescreditcardsareoneofthemost
[Link]
beforetheInternet(WesternUnionstartedacardprogramin1921!).
Howeverasmostpeopleknowtheunderlyingproblemsofearlier
generationsofcurrency,fraudulentuseofthetoolisaveryexpensive
problemthattheincumbentplayershavenotbeenabletofixandabout
1%ofallcreditcardtransactionsarefraudulent.
In2009,thereleaseoftheBitcoinwhitepaperrevealedonewayonhow
tosolvetheissueofhowtomakeadigitalcurrencyandbepractically
[Link]
technologyofpaymentsbecauseitusessomespecialapplicationsof
mathandcryptographytomakecounterfeitingitnearlyimpossible,a
Copyright20142015AndrewWhite

problemthathasexistedeversincehumanshavebeenusingcurrency.
Thisiswonderfulformerchantssincethehighcostsofhandling
[Link]
impossibilityofbeingcounterfeitedisthekeyreasonforthegrowthof
[Link]
reasonsthatwillbeexplainedlaterbutthemainreasonisduetothe
relianceonaparticularmathfunctionofcryptography,moredetailscan
[Link]
currenciesthatunderstandthisclaimthatthismakesdigitalcurrenciesa
betterstoreofvalueandexchangethengold,whichisanaweinspiring
leapinhumanprogressifthepremiseholdstobetrueforasufficiently
[Link]
myview,theeliminationoffraudisabigenoughofanimprovementto
justifyapeertopeerdigitalcurrencyonitsownmerits,butthereisalot
morethatwewillbegettingto.

CounterpartyRisk

Nowthatweunderstandhowdigitalcurrenciessolvesthecounterfeiting
[Link]
[Link]
reasonwhythisissoisbecausephysicalgoldhasnoneedfora
counterparty,[Link]
riskthateach
partyofacontracthavethattheotherpartymaynotliveuptoitscontractual
obligations,[Link]
likeBitcoinandRipplesXRPdonothavecounterpartyriskbecauseyouownthe
secretkeystoyourcurrencyinasimilarfashiontoowninggold,youarenot
beholdentotrustingthirdpartiesforyourbalancesheet,andthatisaninherently
[Link]
systemswerecentrallycontrolledandthecontrollingorganizationscando
whatevertheywantwithyourfundswhichlogicallyhasinherentcounterpartyrisks
associatedwithit.
Copyright20142015AndrewWhite


ByzantineGeneralsProblem

Thisbizarresoundingproblemhasa
longacademichistory
thatisquite
fascinatingifyouareinterestedinsuperdryandacademicallyrigorous
[Link]
decisionmakingprocess(likeapaymentssystemorledger)canreconcile
inaccurateandfalsemessagesandsafelytocometoanagreementona
matterthatistruthfulandaccurateupuntilacertainthresholdtobetruein
[Link]
like,youandyourgroupoffriendswanttogosomewherefunbutyou
havesomefriendswithquestionablemotivesofwhatsomethingfunmight
[Link],ifsixoutoftenfriendsagreethata
destinationmeetsyourstandards,youagreetogoalongwiththeride,but
ifonlyfiveorlessagree,[Link]
wayofdescribingtheByzantineGeneralsProblemanditiscriticaltohow
systemslikeBitcoinchangedworldhistorybyapplyingthissolutiontoa
decentralizedpaymentssystem(moreaboutthatlater).

RippleLabs

[Link]
[Link]
[Link]
RippleandRippleLabstobethesamethingandthatisamistakeyou
shouldavoidmakingasIwilltrytoexplainwhythatisthroughoutthis
[Link].in2012
andlaterreformedin2013byChrisLarsen,JedMcCaleb,David
Schwartz,[Link]
theRippleprotocolandtheRipplenamebutthecodeandprogramsthat
makeupRippleareavailableforfreeforanyonetodownload,use,and
Copyright20142015AndrewWhite

[Link]
Rippleenthusiastsaroundtheworldwhoarepassionateaboutmakingthe
[Link]
feedbacktoproductteamsandengineersleadingtheoverall
[Link]
LabsincludeGoogleVentures,AndreessenandHorowitz,Lightspeed
Ventures,BryanBradford,andothers.AsofOctober2014,RippleLabs
[Link]
[Link],bothofwhichwere
pioneeringcompaniesinpeertopeerlending.
Asanoutsider,IcantsayanythingdefinitiveaboutRippleLabsspecific
[Link]
[Link]
ofstrategiestoshowthepublicthatRippleprovidesabettersystemfor
[Link]
[Link]
thesoftwarefromRippleLabscanbereadandusedbyprogrammersat
nocharge,whichisanopeninvitationforcuriousengineersand
programmerstomakecontributionstothecodeandexpeditethe
[Link]
[Link],potential
issuescanbeidentifiedandfixedearly,beforebecomingaseriousissue.
RippleLabscangiveawaythesoftwareforfreebecausethecorevalue
propositionofRippleisthatanopenpaymentnetworkthatanyonecan
[Link]
planseemstobeworkingwellandRippleisstartingtomakebigwaves.

Copyright20142015AndrewWhite

IfwelookatthehierarchyoffinancialservicesintheUnitedStates,Ripple
isdesignedtoreplacetheAmericanClearinghouse(ACH)payment
[Link]
dragontheefficiencyofmovingmoneysinceittakes35daystomove
moneyanddoesnotuseanytransactionverificationlikedigitalsignatures
[Link]
[Link]
[Link]
thanACH,sameornextdaypaymentsisthenormandothercountries
[Link]
specificallyapaymentmessagingprotocolandnotapaymentsettlement
protocolitstillinvolvesalotmoreworkforfinancialinstitutionstolearn
[Link](aboutfive
second)paymentsettlementandpaymentmessaging(thatmightbea
statementthatlookslikeThispaymentisforBobsnewshoes).Since
Ripplecombinesmessagingandsettlementsomesmartpeoplehave
[Link]
Copyright20142015AndrewWhite

thatinmindletsdiverightintoexperiencewhatusingusingtheRipple
paymentsystemlookslike.

Wallets

Touseanonlinepaymentssystem,peoplestartbycreatingadigital
[Link]
andsomesortofsecuritymechanism,likeapassword,tolimitaccessto
[Link]
[Link]
[Link]
reasonsforthisbutaRipplewalletisdifferent,itisimpossibleforanyone,
includingthemakersRippleLabs,tostopsomeonefromaccessingtheir
[Link]
nowletsmoveontowhatthewalletlookslike.

[Link]
Ripplenameanditlookslike~[Link]
[Link]
nameistiedtothepublicnameoftheRippleaddressthatbeginswiththe
lowercaserandlookslikethis:
r3CxMDQFX1Atq1vQN5sqVsjm3rawGSwd32(note:donationstothe
authorarewelcome!).

Copyright20142015AndrewWhite


ThisisanexampleofwhataRIpplelookslikeavailableat
[Link]

ARippleaddressshouldbethoughtoflikeaphysicaladdresswheremail
(orpaymentmessages)[Link]
[Link]
sentencesIjusttaughtyouthebasicsofpublickeycryptography,feel
freetoGooglethatformoreinformation.

Sothewalletisalwaysavailableonawebpageandhasthefollowing
functionality:wallettransactionhistory,anaddressbook,asectionto
sendandreceivepayments,andasectionofthewalletforyoutomake
[Link].
ItisimportanttonotethatRipplewalletsarenotinsuredbytheFederal
DepositInsuranceCorporation(FDIC),whichwascreatedbytheU.S.
governmenttoprotectconsumersfrombankfailures.
Formostconsumers,thepowerofRipplepaymentshappenswhen
[Link]
accustomedtotheslowandcumbersomeprocessoftraditionalpayment
networks,[Link]
Copyright20142015AndrewWhite

dopeopleneedtowaitfordaysforabankwiretransfertobecompleted,
orweeksforacreditcardpaymenttobeprocessedwithRipple,havingto
[Link]
modernbankingsystems(likeEuropeandChina)withsamedaybank
transfers,theexistingpaymentsystemisstillarelativelyslowandcostly
[Link]
whatkindoflowcostnewserviceswillbecomeavailablewithRippleto
merchants,consumers,andinvestorsacrosstheentireglobaleconomy.
Asfarasmostusersareconcerned,theRipplewalletisalsowhere
magichappensinitsroleinredefiningthepaymentexperiencearound
[Link],inmyopinion,walletsarenotallthatinteresting
visually,orconceptually,[Link]
aredesignedtobeassimpleaspossiblehencethereisntmuchtoseeor
doinaRipplewallet(withtheexceptionoftrading).
IliketodescribeRipplewalletsusingthefollowingexamplebutitisnota
[Link]
[Link]
licensewiththefollowinganalogy:aRipplewalletiskindoflikeabank
accountbutyouasthewalletowner(accountowner)areempoweredto
controlhowmuchmoneyyoutrusttobeheldbyyourvariousbanklike
entities(gateways,moreaboutthemlater).
RippleWalletsaregreatbecausewhentheycanstoreormakepayments
[Link]
thatisabletoacceptanycurrencyevercreated,includinggovernment
issuedcurrenciesandprivatecurrencies!Forthefirsttimeinhistory,
[Link]
thatmaytakeyearstobewidelyunderstood,appreciated,andaccepted
bythemarket.

Ripples

Copyright20142015AndrewWhite

RipplesareaccesstokensusedbytheRippleprotocolandare
referredtoacurrencycodeofXRP(whichislikeUSDorBTC).The
protocolconsistsoftherulesofhowRippleworksandtheserulesare
translatedbyprofessionalprogrammersintosoftwaretoperformallthe
[Link],peoplemakeprotocolsto
[Link]
[Link],thinkofthe
[Link]
[Link]
simple,easilyreproducible,[Link]
protocolsandmonetarysystemsaimforsimilarresults.

Tobeconsistentwithinternationalnamingconventions,Ripplesare
knownbyathreeletteracronym,comparabletohowUSdollarsare
[Link]
hasbeenaroundpriortoRippleLabs.Itwasfirstworkedonin2004and
lateronin2011thecoreteamaroundRippleLabswasformedwhothen
[Link]
Ripple,areallytinyamountisdeletedtomakesurethenetworkdoesnot
[Link]
consumersmightonlyneedtousearelativelyfewRipplesacrosstheir
entirelifetime.Ripplewasreleasedwithahardlimitof100billionunitsof
XRPtoeverexist.The100billionnumberwasjudgedtobelargeenough
tobeusefulfortheRipplenetworkforhundredsofyears,andquantifiable
enoughtoprovideabusinessmodelforRippleLabs.
OnceRippleswerecreatedthenextstepwastofigureoutthebestway
[Link]
RippleLabsbusinessstrategythatXRPbedistributedtoawidenumber
ofmarketparticipantswhointendtouseRippleasasystemforpayments,
currencytrading,[Link]
nativecurrency(Ilikethetermmetacurrencybutitisnotascompletely
obviousastowhatthatmeans),XRPcanbespenttosend(orreceive)
Copyright20142015AndrewWhite

[Link]
alsosellsbulkquantitiesforlargeordersandgivesawaysmalleramounts
[Link]
interbankpaymentsandfacilitateinternationaltrade.

SonowthatwehavecoveredabitofhowmuchXRPthereis,whatitis
usedfor,andRippleLabsroleinthedistributionofXRP,letsmoveonto
investmentopportunitiesinthespace.

TherearedifferentinvestmentstrategiesinvolvingRipplesandalarge
numberofpeopletradethemagainstothercurrenciesforspeculation.
Beforegettingintothevariouschoicesavailable,Iwouldsuggestwould
beinvestorsaskthemselvesafewquestionssuchas:

AmItechnicallyproficientenoughtohandledigitalcurrenciesonmy
own?
DoIalwaysfollowbestpracticesforcomputersecurity?
ShouldIrelyonareputableconsultant,broker,orhedgefundtomanage
myinvestment?
AmIwellversedinthenatureofonlinescams,walletsecurityissues,
andlegalissuesbeforebuying?
ShouldIuseXRPasahedgeagainstmyotherinvestments?
Youranswerstothesebasicquestionsshouldhelppointyouinthe
[Link]
withyourself,sobecandidandassessyourstrengthsandweaknesses
beforemakinganyinvestment.
Investorsmustbeawarethatthereareinherentrisksassociatedwith
[Link]
ofonlineofferingsandtheinvestormustalwaysperformduediligence
[Link]
Copyright20142015AndrewWhite

fraudulent,thereisnoguaranteethatthevalueoftheinvestmentwillyield
[Link]
andwillnotcommentontheinvestmentfitnessofRipple,XRP,orthe
[Link]
istheprocessofinvestigatingaproposedinvestment,andthe
[Link]
skepticalandcautiousinallyourdealings.
Atfirsttheywereworthnothingatmarketrates,butXRPhassteadily
increasedinvaluethroughasteadilyincreasingnumberofservicesbuilt
[Link],itisnot
[Link]
currentlyvaluedforlessthanapenny,Ripplesarereallyonlyusefulfor
makingtransactionsontheripplenetworkbutspeculatorsontheRipple
[Link]
rareoccasionsthevaluehaschangedhundredsorthousandsofpercent
aday.

Gateways

GatewaysareserviceprovidersthatletRippleusersdeposit,transfer,and
withdrawmoneywiththeiraccounts,includingtransfersbetweena
[Link]
retainusersoftheirservice,gatewayswillinnovateandofferbeneficial
servicestotheircustomers.

Copyright20142015AndrewWhite

Asgatewayscompeteformarketshare,Ifullyexpectthatmoregateways
willbelaunchedthattheywillincreasinglyofferinnovativerewards
programslikeairlinemiles,coupons,andpremiumservicediscounts.

Thereareanumberofservicesavailabletopeoplewhowanttocreate
[Link],they
[Link],
theycanuseahostedwallet(moreonthatinamoment)oruse
[Link]
thefuture,cloudbasedoptionswillbeavailablesuchasOMGsOne
MillionGatewayshostedservice.

BecauseofRipplesdesign,anyonewithaRipplewalletcantechnically
becomeagateway.

Copyright20142015AndrewWhite

However,thatisneitherlikelyornecessaryinalmostallconsumeror
[Link]
[Link]
[Link]
inthecontextofRipplemeanshowmuchofmymoneydoItrustthis
gatewaytohold?Gatewayswithanestablishedhistorywithagood
reputationforcustomerservicetendtobemoretrustedbyusersthannew
gatewaysthatarelessknownandhavealimitedhistoryofoperation.

ThisisanexampleofagatewayloginpagefromSnapSwapInc.

Thisexampleiswhatabasicgatewayexperiencelookslike.
Copyright20142015AndrewWhite


Gatewaysasabusinesshaveafewdifferentbusinessmodelsavailable
[Link]
transmission,[Link],you
mightbeinterestedinenablingpeopletosendpaymentstoanother
[Link]
[Link](more
aboutthoseinthenextsection)totheaccountholderandthoseIOUs
[Link]
[Link],apersoncan
[Link]
[Link]
gatewayswebsiteorservicebecomesunavailable,theIOUsdonot
[Link]
disruption,theIOUsmaylosesomeoftheirmarketvaluefortheIOUsof
currencytheyrepresent,buttheycouldberedeemedwhenthegateway
[Link]
decidewhatrecourseisavailabletotheIOUholders.
Thechartson
[Link]
containthemajorcurrencymarketson
[Link]/XRPto
indicatethattheseIOUsareissuedbytheBitstampgatewayintheUSD
[Link]
[Link]:
RippleCNCNY/[Link],youwillseethatBitstamp
[Link]
onthefeesoftradesorpoliciesastowhatisallowedtobetradedbutin
generalalltheIOUswillbetradableforalltheequivalentIOUsona
givengateway.

[Link]
gatewayitiscriticalthatyouonlytrustaproperlyestablishedgateway.
Thismeansitisattheveryleastincorporatedandisrunbypublicly
Copyright20142015AndrewWhite

knowncorporateofficers.
Ifthegatewayisoperatedinananonymous
manner,thatmeansthereisnoaccountabilityiftheservice
disappears.
Thisisimportant:inyourRippleWallet,youshouldonlygive
trusttogatewaycompaniesthatyoutrusttobereliableandresponsible
withyourtokensofvalue,[Link]
bank(atleastatthetimeofthiswriting),notethatthereisnoFDICstyle
[Link]
makesanefforttobelegitimatehaspubliclyknownstaff,abusiness
address,customersupportdetails,and/oraphonenumberwithpeople
[Link]
aRipplegatewaywebsitedisappears,yourIOUsdonotdisappearfrom
[Link]
cashvalueisimpossibleunlessathirdpartygatewayacceptsthemfor
[Link]
anonymousgateways:
donttrustthem
.Youwillknowtheyare
anonymousbecausetheoperatorsdonotmakeitobviouswhothe
ownersare,wheretheyareincorporated,whattheirantimoney
launderingpoliciesare,etc.

Tohelpmaketrustworthystandardsforgatewaysastandardsgrouphas
beenformedcalledtheInternationalRippleBusinessAssociation(IRBA),
[Link]
morebelowbutfornowyoushouldknowtheIRBAhasasetof
requirementstomakesurethatthegatewayslistedonIRBAswebsiteat
[Link]
practicesforbusinesses,etc.Thereareroughly170membersofthe
IRBAatthepresenttime,includingpeoplewhohaveexpressedtheir
interestinformingagatewayforcertainmarketsorareasintheworld.
TheauthorhasbeenelectedtoserveasSecretarytothisorganizationto
helpensureitmeetstheseexactingrequirements.

Consensus
Copyright20142015AndrewWhite


Consensusiswherewestarttogetintothenittygrittytechnicaldetailsof
[Link]
[Link]
[Link]
thingsinlifethatdonotrequiredafullunderstandingofhowitworks.A
coupleoftechexamplesincludeareexactlyhowcomputersworkor
[Link]
makethesetoolsknowwhattheyaredoingandtheycanspareusthe
[Link]
withthatsaid,IjustwanttomakesurethatyouunderstandRippletothe
lowlevelcodeandprotocolislikewisenotarequirementtounderstand
theideasofRipplesoifthetechnicaldetailsdonotinterestyoufeelfree
[Link]
mayhaveheardthatBitcoinworksthroughaschemecalledproofof
[Link]
solvingahardmathproblemthatinitiallynoneofthemknowtheanswer
[Link],thecomputerthatsolvestheproblemis
awardedablock,anawardofBitcoin(25atthetimeofthiswriting)and
theblockisdistributedalongtoalltheothercomputerswithacopyofall
[Link]
[Link],thissolvesanimportant
[Link]
[Link]
thoughttheycouldjustusespreadsheetstocreateacryptocurrency,they
wouldsoonfindthatsomeonewouldcheatbymanuallychanginghow
[Link]
academiccirclesastheByzantineGeneralsproblemwhichishowto
[Link]
longtimeandonewayofsolvingitwasreleasedtothepublicin2008by
SatoshiNakomoto,theanonymouscreatorofBitcoin.In2011Jed
McCalebwasthinkingofwaystosolvesomeoftheproblemswiththe
[Link],Jedwantedtosolvetheslow
Copyright20142015AndrewWhite

[Link]
workproblemonBitcoincantaketenminutesorhoursintimeandthat
[Link]
[Link]
computersonadigitalcurrencynetworkcouldagreethatatransaction
happenedtherewouldbenoreasontodoubtthatatransaction
[Link]
agreeingthatatransactionoccurred,[Link]
enoughconfirmationsoccuritcanbereasonablybeassumedthata
[Link],
[Link]
alsobealotmoretransactionssincethecomputationalcostofthis
[Link]
academicpuzzle,theByzantineGenerals'[Link],
howdotwogeneralscometoanunanimousagreementwhentheyare
separatedbydistancesthatcreateobstaclestocommunication?

OneanswertothisproblemisdonewiththeRipplesoftware,thenetwork
issetuptovalidateatransactionif80%ofvalidatornodesagreea
[Link]
deterministicrules,i.e.,theycannotcreatefundsoutofnowhere,make
fundsdisappear,andalltransactionsmustbeproperlysigned.

NextImgoingtoextensivelyquoteRippleLabsChiefCryptographer
DavidSchwartzwhohasalottosayonthisimportanttopic:Thenumber
[Link],the
consensusprocesscompletesveryquicklybutmorefrequentlydoesn't
[Link],theconsensus
processtakesmuchlonger,butonlyveryrarelyfailstoactuallyreach
consensus.(Whenyousay,"Ibelievethere'saconsensus",youcan't
actuallybe100%surethereisinfactaconsensusornobodycandeclare
Copyright20142015AndrewWhite

aconsensusfirst.)
Theconclusionthatnoconsensushasbeenreachedis
avalidconclusionandcanresultduetopoortopologyorByzantine
[Link]
[Link]
observingatmorepointsthanwillnormallybepossible.
Soeachserverrunsoutaheadofwhatitknowsforcertain,applying
[Link]
consensusisinfactproduced,theserverlaterdeterminesthiswith
certainty,andthuscanadvancewhatitknowsforcertain.
Essentially,theconsensusprocessproducesastreamofsigned
messagescalled"validations"fromwhichit'spossibletodeterminewith
certaintywhetheraconsensushadactuallybeenreachedatsomepoint
inthepast.
ItispossibletocreateUNLtopologiesthatfrequentlyfailtoreach
[Link]
algorithmthatmakessuchtopologiesexceedinglyunlikely.
Evenwithaperfecttopology,twotypesofByzantinefailuresarepossible.
One,whichisnotthatuncommon(oneoutofevery200roundsorso),is
[Link],someonehasto
[Link],someonemustdeclarea
[Link],whoevermakesthatdeclaration
can'tknowforcertainthatotherswilldeclarethatsameconsensus(or
theywouldhavealreadydoneso,andsohewouldn'tbefirst).Soit's
alwayspossiblethathedeclaresthewrongconsensus.

Copyright20142015AndrewWhite

Inthiscase,theserverthatsufferedtheByzantinefailurequickly
discoversthattheothervalidatorshavebuiltadifferentledgerthanitdid
[Link],from
thevalidations,whichledgerwasthemajorityledger.
[Link]
case,severalserversdeclaredifferentconsensusesandthereisnoclear
[Link],thenetworkasawholemustreconverge
[Link]
[Link]
[Link]
tothefollowingpriorities:1)Validity.(Transactionsproperlysigned,rules
followed)2)Agreement.(Ledgersgetsupermajorities)3)Utility.(Asmany
transactionsincludedaspossible)2isuselesswithout1.3isuseless
without2.

OntheRippleforumrecently,amathematicallymindedmemberasked
DavidthefollowingquestionHowdoesRipplesolveByzantineGenerals'
Problemsuchasnosolutionunlessn3t+1,n=numberofprocesses
inthesystemandt=numberoftraitors?

[Link]
[Link]
theconsensusprocessformsaledgeronwhichthereactuallyisno
consensus,thentherewillbeinsufficientvalidationsandtheconsensus
[Link]
battleandtheotherarmiesaren'tthere,youjuststartover,nothing
[Link],keeptryinguntilthevastmajority

Copyright20142015AndrewWhite

[Link]
simplebutelegantsolutionhaswiderangingramifications.

[Link]
informationpleasecheckouttheRipplewikipagesat
[Link]
or
[Link]

Validators

SincewearediscussingthetechnicaldetailsofhowRippleworks,for
completenessIjusttomentionValidatornodesandwhattheydo.

TheRipplewikihasthistosayaboutvalidatorsTheRippleprotocol
dependsonacollectionof
validators
whoparticipateinthe
consensus
processandproduce
signedledgers
whichgetbroadcastintothepeerto
[Link]
ledgerstodeterminewhatisthe
consensusledger
,orthe"true"stateof
[Link]
choosetopayattentiontoasufficientlylargediversesetofvalidatorswho
arenot
colluding
todefraud.When80%ofvalidatornodesagreethata
edgerisvaliditgetssignedandconfirmedacrosstheentireRipple
[Link]
problemfirstsolvedbyBitcoinwithmintingnewtokensinadatabasefile
calledablockchain.

CurrencyIOUs

IOUs(Ioweyouspronouncedhowitisspelled,eyeohu)arecredits
[Link]
Copyright20142015AndrewWhite

(something).WearemostfamiliarwithIOUsfromourbankingorinvestor
[Link]
apromisethatacertainamountoffundsthattheIOUissuercontrolsare
[Link]
amountoffundsthatitcontrolsand,fromthistotal,theyuseadatabase
toorganizewhattheyowetheircustomersandthenumberdisplayedto
[Link],
butinsteadofabankingorinvestmententitycreatinganddisplayingthe
IOUtoyou,anIOUontheRipplenetworkisanassetcreatedbyaRipple
gatewayindicatingIpromisetoredeemyouaspecificamountofthis
[Link],youwouldsee
thedepositoftheUSDIOUsinyourRippleWallet.

[Link]
doesnotcarewhoyouaresendingamessageto,orthecontentofyour
[Link]
emailislikethesenderandreceiverofRipplewallets,themessageinan
emailissimilartowhatcurrencyandhowmuchissentinthe
transaction(themessage,inouremailanalogy).Thefinallessonyou
shouldtakeawayfromthisisthatanIOUhasnovaluewhenitisnot
backedbyanassetthatcanberedeemed.

Pathfinding

PathfindingisoneofthetechnicaldetailsthatIincludeforcompleteness
[Link]
[Link]
inRipplebasedonthebestpossibleexchangerateontheorderbooksof
[Link]:

Copyright20142015AndrewWhite

Pathfindingisofmostinteresttomarketmakersandtechnicaltypestobe
[Link]
fastitisslowenoughastomakehighfrequencytradingimpossibleanda
partofthereasonwhythatisisbecauseofthetimeittakesPathfindingto
work,afewsecondsistooslowforHFTtobeeffective.

Traders

AnyonewithaRipplewalletcantradethedigitalcurrencyassetson
[Link]
equivalenttomakingatradeontheforeignexchange(alsoknownas
forexandFX)currencymarkets.
Copyright20142015AndrewWhite

Eachcurrencyhasathreeletterabbreviation,andeachcurrencytradeis
expressedasapairthatincludesthebasecurrencyandacounter
[Link](USD/XRPorEUR/JPYorCNY/BTC,etc.)is
supportedbyagatewaythathasanorderbookofbuyersandsellersofa
[Link]
[Link](March2014),themostpopular
currenciestradedareChineseYuan(CNY),USD,andBTC.

Automatedtradingisapopularchoiceforinvestorswiththetechnical
knowhowtoworkwithprogrammingscriptstomakeatradingbot.
ThesebotsconnecttotheRipplenetworkandlookatthebidsandasksin
[Link]
ofthesebotsrequireafairamountoftechnicalknowledgeandskillto
[Link]
availabletoinvestorsatthemoment,theseareknowntobein
[Link]
workforyouaroundtheclockwithouttiringormiscalculating.

Copyright20142015AndrewWhite

[Link]
XRPbutdoesnothavetheknowhowhowtogetitisanexcellentwayto
[Link]
offmarkettrading,[Link]
theUnitedStates,tociteoneexample,transactionsgreaterthan$10,000
needtobereportedtotheFederalFinancialCrimesNetwork(FinCen).

MarketMakers

Marketmakersarepeoplewhoprovideliquidity(i.e.,money)between
gatewaystoallowpaymentsthroughapathwayofcurrenciestobe
[Link]
destination,apathwayistherouteatransactiontakestocompletea
[Link],the
easiestiswithasimpleorderintheRipplewalletforthesamecurrency
[Link]
benotedthatanyonecanbeamarketmakerbutithelpstohavealotof
capitaltomakeitmoreworthwhileforthemarketsyouaretryingto
support.

Enterprises

TheRippleecosystemislikelytoseepowerfulwaves(ha!sorry...)ofnew
servicesdevelopedtotakeadvantageofthenewfoundpossibilitiesthat
[Link]
[Link],remittanceoptions,charities,experimental
hobbies,andcommoditiesalsoareallpromisingareasforinnovatorsto
placetheirstake.

Copyright20142015AndrewWhite

Anumberofinterestingcompanieshaveformedbasedentirelyonthe
[Link],Coinst,RippleWise,
SnapSwap,andothersareleadingthewayintermsofinnovationand
[Link]
olderthanRipplehavealsosignedontousetheservice,mostnotableto
dateisBitcoinexchangeBitstamp.

CreatingorinvestinginanewcompanyintheRippleecosystemisan
attractiveoptiontotheinvestorfamiliarwithmanagingequityassets.
Rippleissonewandtheopportunitiesitofferssolargelyuntapped,that
thedooriswideopenforenterprisingindividualsandstartupstomakea
[Link]
interestsyouinpursuingabusinessIstronglyencourageyoutodoso.
ComplementaryservicesthataddvaluetotheRipplenetworkis
somethingRippleLabsisveryinterestedinsupportingandyoushouldlet
themknowaboutitonceyouarereadytolaunch.

DueDiligenceQuestions

IfyouplanoninvestingintheRippleecosystemyoushouldbeasking
somehardquestionsandhavehonestanswersbeforethrowingmoney
[Link]:

HowwelldoIunderstandRipple?
WhatdoInotunderstandaboutRipple?
Whataretherisksinvolved?
WhatarethelegalandregulatoryissuesimpactingRippleinmycountry
ofresidence?

WhatdoIknowabouttheprincipalsintheenterpriseinwhichImight
invest?
DoIunderstandallthecounterpartyrisks?
Copyright20142015AndrewWhite

WhathappensiftheRipplesoftwarebecomesfundamentallybroken
andcantbefixed?

Whoarethemajorcustomersandtheapplicationsrelatedtoinvestment
opportunities?

Whatarehistoricalandprojectedgrowthrates?
Whatistheexpectedmarkettimingofnewproducts,services,or
enhancements?

Alongwiththesespecificinvestorquestions,Iwantedtosharethislistof
bestpracticesfromtheRipplewiki:

Youmustprotectyourself:

[Link],qualify,orguaranteethe
performanceofanymerchantorgateway.
Donottrustservicesoperatedanonymously,youhavenorecourseif
theyfailtodeliverontheirpromises.

DonotenteryourRippleusernameandpasswordonanysiteyoudo
nottrustwithyourfunds.

DonotenteryourRippleusernameandpasswordonanysitethatdoes
[Link]
browserhasagreenlocknexttothewebsiteaddressintheaddressbar.
[Link]
trustyourclientprovidertobehonest,secure,competent,uptodate,and
perhapsmore.

ForlongtermstorageofXRPorIOUsinacoldwalletconsiderusing
theDesktopClient.
Youshoulduseapasswordsolongandrandomyoucannotremember
it(onlystoreandcopyitsecurely).

Copyright20142015AndrewWhite

Ialsotellmyclients:Idontwanttoknowyourpasswordorsecretkey,
youshouldnothavetotrustmetothatlevel.

Usingdigitalwalletsisarelativelynewphenomenaanditisfairtosaythat
thestateofcomputersecurityandconsumersarenotreadyforthe
responsibility.

IntheFuture

Thefuturewillcertainlybringmanyexcitingandinterestingareasfor
[Link],Imexcitedforthetimewhen
optionstradingbecomesmorewidelyavailable(whichwilllikelybeeasier
withtheadventofsmartcontractslaterin2015).Inmyopinion,smart
[Link],
byusingsomeparticularmathfunctionsitispossibletoissuesharesfora
companyorraisefunds.

InJuly2014RippleLabsannouncedCodius,anewprojecttoenable
[Link]
[Link]
thisthroughsomeinnovativedesignchoicesthatallowpeopletomake
[Link]
withStefanThomastheCTOofRippleLabswhoexplainedtomethatthe
designwasinformedfromtheexamplethatbusinesslogicanddata
storage(databasesordecentralizedledgerslikeBitcoin)aretwo
[Link]
informationandbusinesslogicontopofthedatabasetodecidewhat
[Link]
[Link]
[Link],codeexecutesin
[Link]
[Link]
Copyright20142015AndrewWhite

[Link]
languagecanuseitandanydigitalassetsystemcanuseitsapproach.
[Link]
anythingthatcanbeaskedaquestionandanonbiasedansweris
[Link]
[Link]
[Link]
Codiusisneutralastowhomyouaskyourverifiedquestionsandhowyou
[Link]
thepriceofBitcoinandorthetemperatureofDalyCity,ifalltheanswers
adduptothethresholdoftruthaswritteninyourcontractthetermswill
[Link]
systemoutthereandsomethingthatcreativepeoplewillmakeamazing
applicationswith.

TheCodiusapproachtosmartcontractsfreesdevelopersfrombeing
lockedintoanyonesystemwhichistheHolyGrailfornextgeneration
[Link]
contracts,IhighlysuggestathoroughreadingofGreatChainsof
NumbersbyTimSwanson.

NewservicesforRipplewalletsarecomingoutallthetimeincluding
Shift
Payments
whoarereleasingacreditcardthattiesintoaRipplewalletin
[Link]
[Link]
shoppingforsomethingandcalledmeupthathercardwasdeclinedat
[Link]
IwasabletosendUSDtoherRipplewalletandtheshewasabletomake
[Link]!

Likeanyactiveprotocol,[Link](and
Codius)issuchadisruptivenewtechnologythatitsfullimpacton
Copyright20142015AndrewWhite

[Link]
whenpeoplewillbesoaccustomedtoamulticurrencywalletthatthey
willaskwhydidntIthinkofthat?Peoplewholivedthroughthe
beginningofdigitalstockmarketsandoptionscontractshavesaidtome
howtheythinkwearewitnessingthedawnofadisruptivetechnologyas
bigasanadvancementasdigitalstockmarketsorpapercurrencies.

ImportantRippleInfrastructure

BeyondRippleLabsthereareanumberofimportantresourcesand
[Link]
[Link]
mostactiveoftheseare
XRPTalk
ranbyacommunitymemberinFrance
andthe
RippleLabsForum
.Acoupleofnewserviceshavecomeinto
beingrecentlythatareusefulaswell,[Link]
Coinist
forpublicreviewsofgatewayservices.

ThemostwellknownRipplegatewayrightnowis
Bitstamp
,theworlds
[Link]
[Link]
companiescreatedspecificallyfortheRippleecosystemthatIknowof.
ThereisalsoalotofdiscussionaboutwaystoimprovetheRippleworld
[Link]
yearsforimportantinnovationstobebroughttomarket.

Fortechnicalinfrastructure,Iexpecttoseemoreservicestoenterthe
markettoserveasenginestodrivethegrowthofdigitalassetsanduseful
[Link]

Copyright20142015AndrewWhite

[Link]
potential.

FAQ

HowisRippledifferentfromBitcoin?

[Link]
[Link]
protocol.ThedifferenceisbetweenBitcoinbeingap2pvirtualcurrency
[Link]
mechanismcommonlyknownasminingtogenerateBitcoinandorverify
[Link],Rippleusesasystemcalled
[Link]
[Link]
[Link]
thatRippleLabswantstoseeotherpaymentsystemssettledortradedon
Rippleandnotcompetewiththem.

Iheardthatminingdigitalcurrenciesrequiresanincredibleamountof
electricity,isRipplesimilar?

[Link]
normalhighendcomputerserver.ThemegatonsofCO2andmegawatts
ofelectricityandpowerbillsusedbyotheralternativesisnotanissuewith
Ripple.

IheardthatRippleisapreminedcurrency,isthattrue?

[Link]
acurrencyplatformthatusedasystemofminingtogeneratethecurrency
Copyright20142015AndrewWhite

[Link]
ismorefairduetothesupposedequalprobabilityofbeingrewardedfor
[Link].
HoweverRipplesuccessfullysolvedsomeoftheinherentand
fundamentalproblemsthatminingbringstoadigitalcurrency:the
slownessoftransactions,the51%attackproblem,blockchainsplits,etc.
Indefiningtheutilityofcrosscurrencypayments,afundamentaldesign
[Link],
nobodywantstheuncertaintyofwaitingforapaymenttoconfirmand
Ripplecanmaketradingthosekindsofassetsfasterandmoresecure.

DoanybanksuseRipple?

Atthetimeofthiswritingthereareafewbankswhohaveclaimedthey
[Link]
announcementsforbanksinChina,Germany,andAustralia.

Whatarevalidators?TheRipplenetworkreliesondedicatedcomputers
calledvalidatorstoconfirmthattransactionsarevalid,whyisthis?

Validatorsarethelightweightwaytoverifythattransactionsarevalid
comparedtotheheavyweightneedforcomputingpowerin
[Link]
needafewcomputersdoingthis(insteadofthousandsintraditionaldigital
currencies).Bydesign,RippleLabscreatedtheRipplenetworktorelyon
validatorsthattheyrunandtheyknowcanbetrustedtomakesurethat
[Link]
[Link]
againstthegateway,theycanmakefraudulentpaymentsagainstthe
[Link]
trustednodessuchasthoserunbyRippleLabs.
Copyright20142015AndrewWhite


HowmanypeopleuseRipple?

Thereare157,[Link]
between15,000to10,000walletsthattrustthem.

IheardsomeoneforgottheirpasswordorhadtheirRipplecoinsstolen,
arethosecoinsorwalletsinaccessibleforever?

Yes,[Link]
[Link]
inRippleareirreversibleduetohowsomeofthelowlevelmathfunctions
work(formoreinformationontheunderlyingtechnologies,youcan
researchpublickeycryptographyandmessagesigning).Youmost
safelystoreyourprivatekeytoaccessyourwalletintheeventof
RippleTradedowntime.

Iwanttoknowmoreabouthowtosetupagateway,wheredoIstart?

[Link]
isagood
[Link]
becomesuccessful.

WhatisaSecretKey?

YourwalletsSecretKeyisyoursecretentranceintoyourwalletifyou
[Link]
[Link]
Copyright20142015AndrewWhite

arenamedsecretbecausetheymustbeabsolutelyunavailableto
[Link]
SecretKey,[Link]
havereasontobelievesomeonehasgainedunauthorizedknowledgeof
yourSecretKey,youshouldcreateanewwalletandsendyourassets
[Link]
secretkeywithanyone(exceptperhapsyourattorney).

WhatisthebesttechnicalresourceforRipple?

ThebestRippledocumentationresourceislocatedat
[Link]
Developerscanalsocheckout
[Link]
Forfurtherinformation,Isuggestconnectingwith
thedevelopersontheIRCchannelontheFreenodenetwork#ripple.

IwanttolearnmoreaboutConsensus,wheredoIfindmoreinfo?

TheConsensusWhitepaperreleasedinAugust2014:
[Link]

IdontlikehowRippleLabsdoesXYorZ,whatdoyouhavetosayabout
that?

[Link]
high,[Link],and
[Link]
certainthatyouwilleventuallyseeimprovementstotheissueyouare
concernedwith.

Copyright20142015AndrewWhite

Whataresoftwareforks?

Softwareforkshappenwhenonegroupofsoftwaredevelopersdecidesto
takethesourcecodefromaprojectandmaketheirownpossibly
[Link]
happenforvariousreasonsbutthemostlikelyreasonisthatonegroupof
[Link]
[Link]
[Link]
makesimprovementstheotherdeveloperswerenotwillingtomake.
AlternativeversionsofRippleareexpectedtobereleasedinthefuture
andthisisgoodfortheRippleprotocolsincenewideascanbetestedin
differentnetworks.

Whataregoodcommunityresourcesforgettinganswerstomyadditional
questions?

Myfavoriteresourceistheforumat
[Link]
butthemost
popularcommunityforumis
[Link]

HowdoesRippleLabssellRipples?Dotheysellontheopenmarket?

AccordingtoDirectorofCommunicationsMonicaLong
theydonot
:

RippleLabsisn'[Link]
portionofXRPreservedforbusinessoperationsthroughdirectwholesale
[Link]'veseenrecentlyisawholesale
[Link]'vechangedthetermsof
wholesalepurchasingtolimitmarketimpactinthefuture.

Copyright20142015AndrewWhite


IhavesomethingIwanttodiscusswithRippleLabs,whatisthebestway
formetodoso?

Talktothebusinessdevelopmentteamatpartners@[Link]
developerrelationsteamatdevelopers@[Link].

Iwanttostartacurrencyissuinggateway,butIhavenoexperienceand
nocapital,howdoIgetstarted?

FirstofallIapplaudyourenthusiasmforRippleandaddingvaluetothe
[Link].
Gatewaysarepowerfultoolsandwithnobackgroundincompliance,
regulations,orthetechnicalriskswithusingRippleyouwouldbedoing
[Link]
suggestyoufindsomeequallyexcitedpartnerswithexperienceinthe
paymentsindustryordigitalcurrenciesbeforemovingforward.
AtOMG
weuseaveryrobustsystemofmultipleserverstodeploythegatewayfor
redundancy,security,[Link]
[Link]
[Link]
onyourownislikelearninghowtoflyahelicopterforthefirsttimeand
[Link]
takenlightly.

Copyright20142015AndrewWhite

Iwanttolearnmoreaboutcryptography,wheredoIstart?

Imgladtohearyourinterestinthisitisahobbyofmineaswell!
[Link]
thebasicprincipalsisillustratedatthislink
[Link]

WherecanIlearnmoreaboutthesocalledByzantineGeneralsproblem?

Theoriginalpaperdescribingasolution(backin1982!)canbereadat
[Link]

Glossary

[Link]
reporting,neitherBitcoin(orRipple)areanonymous.

[Link]
Bitcoinisthatitisnearlyimpossibletocounterfeit(i.e.,makefakeBitcoin)
[Link]
longstandingacademicproblems,thedoublespendproblemandthe
ByzantineGeneralsproblemthatallowsittoworkinasecure,
decentralizedmanner.

CodiusThisisatechnologyneutralframeworkforcreatingsmart
[Link]
[Link]

DueDiligenceistheprocessofthoroughresearchbeforemaking
investments.
Copyright20142015AndrewWhite


EnterprisesincludebusinessstartupsintheRippleecosystem,suchas
newgatewayservices,merchantservices,remittanceoptions,charities,
experimentalhobbies,andcommoditiesallarepromisingareasfor
businessinnovatorsandearlystageinvestors.

Gatewayaserviceproviderthatenableuserstodepositmoneyintoand
[Link]
[Link]
becomeagateway,thecapabilityforthemtobecomesoispresentin
everyRipplewallet.

[Link]
objectsuchasafileandcomputesanumberthatisspecifictoonlythe
[Link]
producinghashesanddifferentstandardsareusedfordifferentpurposes.

MSBaregulatedactivityintheUnitedStatesrelatedtoaMoney
ServicesBusiness,i.e.,moneytransmission.

PublickeyAmathematicaladdressthatyoucangenerateforthe
[Link]
shouldnotsharewithanyone.

[Link]://[Link]/

Copyright20142015AndrewWhite

RipplestheRipplenetworksnativecurrency,representedbytheletters
[Link]
transactiondeletesatinyamountontheRippleledgerforever.

RippleClientThisisthesoftwarethatisusefulforuserexperienceson
webservicessuchasadigitalwallet.

RippleLabs,[Link],
andpromotesRippleswideruseandgreaterusefulness.

RippleserverAlsoknowsasrippled,thisisthesoftwarethatconnectsall
rippleserverstogetherintoadecentralizednetworkaroundtheworld.
Gatewayoperatorsneedtouseoneinordertohavetheirserviceusethe
Rippleprotocol.

IOUisapromisethatacertainamountoffundsthattheIOUissuer
[Link]
assetcreatedbyaRipplegatewayindicatingIpromisetoredeemyoua
specificamountofthiscurrencyasset.

TraderpeoplewhousetheirRippleWalletstoexchangecurrencies
([Link],CNY,[Link]
XRP,BTC,etc.),functionallysimilartotradesmadeontheForeign
Exchange(FX)currencymarkets.

MarketMakersprovideliquidity(i.e.,money)thatallowspaymentsto
followapathwaybetweengateways.

SecurityTheattributeorprocessusedtosecuredatabymeansof
authentication,confidentiality,[Link]
Copyright20142015AndrewWhite

asaperfectsecuritysystemonlyincreasedcostsordifficultyforan
attackertoovercomeit.

[Link]
RippleisthatStellartokensareaninflationaryassetinsteadofa
deflationaryone.

Validatorsdedicatedcomputernodesthatconfirmatransactionisvalid
[Link]
verificationthresholdbeingreachedandonlyneedtobeusedbyexperts
orpeoplerunningprofessionalgateways.

Walletthedigitalaccountwhereindividualshold,access,andusetheir
digitalcurrenciesinRipple.

WalletVaultAwalletvault,alsocalledawalletblobistheencrypted
[Link]
thattheservicehostingthewalletblobcannotreadthecontentsofthe
dataorcompromiseintegrity.

AbouttheAuthor

AndrewWhiteservesasthefounderof
OneMillionGateways
Inc.a
[Link]
InternationalRippleBusinessAssociation,whichisthepremier
organizationofmerchantsandbusinessesthatusetheRippleprotocol.
AndrewhasbeenactiveforyearsintheBitcoincommunitiesinSan
FranciscoandtheBayArea,andbeganusingXRPsoonafterits
introduction.

Copyright20142015AndrewWhite